Euro (EUR) is expected to consolidate vs the US Dollar (USD) in a 1.0455/1.0505 range. In the longer run, outlook for EUR is positive, with a technical target of 1.0530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Outlook for EUR looks positive
24-HOUR VIEW: “We indicated yesterday that ‘the combination of slowing momentum and overbought conditions suggests that instead of continuing to rise, EUR is more likely to consolidate within a 1.0455/1.0515 range.’ Our view of consolidation was not wrong, even though EUR traded in a narrower range than expected (1.0466/1.0506). The price movements did not result in an increase in either downward or upward momentum, and we continue to expect EUR to consolidate. Expected range for today: 1.0455/1.0505.”
1-3 WEEKS VIEW: “Our update from last Friday (14 Feb, spot at 1.0460) remains valid. As highlighted, ‘the outlook for EUR is positive, with a technical target of 1.0530.’ Overall, only a breach of 1.0415 (‘strong support’ level was at 1.0400 yesterday) would indicate that the current upward pressure has faded.”
